Gov requires AMC to divest eight theaters

Department of Justice orders completion of acquisition

WASHINGTON — The Department of Justice will require AMC Entertainment to divest eight theaters totaling some 117 screens in Chicago, Denver and Indianapolis to complete its $275 million acquisition of Kerasotes Showplace Theaters, the nation’s sixth largest circuit.

The DOJ said AMC’s original transaction proposed in January would lessen competition in firstrun theaters in those cities. It filed suit in U.S. District Court in Washington to block the deal, a move that was joined by the three states.

AMC will also be required to inform the Department’s Antitrust Division in advance of any future acquisitions in those markets.

The 101-year-old Kerasotes, based in Chicago, is owned by the Kerasotes family and Providence Equity Partners. The company said in January it would retain ownership of its two new Icon concept theaters in Minneapolis and Chicago, as well as a Showplace theater in Secaucus, N.J.